Allow/Deduct Codes

Enter a two-character code that represents the Allowance or Deduction.

Enter the description of the Allowance or Deduction code.

• The description is printed on the Allowance/Deduction Listing report, pay advices, pay envelopes and pay slips for non-contributory superannuation codes.

 

Enter a short description of the Allow/Deduct code used to print on pay advices, pay envelopes or pay slips, except for non-contributory superannuation codes.

Select from the drop-down the category of the Allow/Deduct Code. The Classifications are supplied with Preceda and cannot be changed, added or deleted.

Click the link for the List of Classifications.

You can check if the code is configured well by navigating to the Single Touch Payroll Health Check screen and refreshing the data.

The Allow/Deduct Type entered can be used to group like codes together for recipient processing.

Preceda checks if the deduction is applied to an employee's net pay, results in that net pay being less than the minimum allowed. If so, Preceda may not apply the deduction, dependent on the priorities given and only applies to Deductions.

Code	Description
0	This deduction is mandatory, regardless of the effect on the net amount. If the resulting net pay is zero or less, the pay is dropped altogether. This is reported in the edit reports for the Payrun. This is the Default option.
1 to 99	The deduction may be left out according to the priority level. The highest priority is 1 and the lowest is 99. High level deductions are applied first after the mandatory deductions, followed by those deductions with decreasing priority levels.

 

Is this Allow/Deduct code to be used with the Protected Earnings?

Code	Description
Y	Include in the protected Earnings Amount calculation. The Allow Partial Deductions field must be set to Y. The Deduction Priority must be set to 1.
N	Do not include in the Protected Earnings Amount calculation.

• This field is only available if the Allow/Deduct Code Classification is set to 4, 8 P or R.
• 4 - After Tax Deduction
• 8 - After Tax Deduction % of Net
• P - After Tax Deduction % Linked Earnings or Gross
• R - After Tax Deduction % of ASG

 

Is this Allowance or Deduction to be included as part of the costing?

Code	Description
E	Exclude the Allowance or Deduction from the costing.
H	Include but Split Costs over Payrun using Hours Divisor This option is available to allow an Allowance/Deduction to be costed to the same cost structure as the hours worked for a particular pay separator. Example: If an employee has a car allowance of $50 per week and during the course of the week, works 22.8 hours in department A and 15.2 hours in department B, the costs for the car allowance would be apportioned with $30 going to department A and $20 to department B.
I	(Default) Include this Allowance or Deduction in the costing.
L	Costing Splits based on Linked Earnings
M	Daily Costing Splits based on Linked Earnings
S	Include but Split Costs over Employee's Costing Split

 

The costing account number where allowance or deductions are to be posted.

• This cost account will override the account number entered in the Employee Costing window.
• This cost account will be overridden by an account number entered during a pay run while entering time card details.

 

Is this Allowance or Deduction included in the Super Gross?

Code	Description
Y	Include in Superannuation Gross.
N	Do not include in Superannuation Gross.

 

This field specifies if the Hours Amount and/or hours rate associated with this A/D Code is to be printed on Security Pay Advices.

Code	Description
Blank (Default)	Suppress both Units and Rate.
N	Do not print (i.e. Restricted to Classifications 'N', 'Q', and 'S').
P	Print both Units and Rate.
R	Print Rate only.
U	Print Units only.

• In the case of Allow/Deduct codes, the option selected by default is Blank.
• When set to be printed, the Rates of A/D Codes with Classifications '8', 'P', 'Q', 'R', 'S', 'V', 'W', 'Y', and 'Z' will be printed as a percentage with the percentage symbol (%) next to it.
• Note that if option 'N' is selected for an A/D code with Classification that is not 'N', 'Q', or 'S', an error message Print on Pay Advice value of 'N' is only valid for A/D Codes with Classification 'N', 'Q', or 'S' will be displayed.

 

Is this Allowance to be included in the calculation of RDO payments?

• This only applies to an Allowance.
• The default is No.

 

A Period/Month print option that specifies, if the Allowance/Deductions report for the Payrun and Period End will include just the pay period figures just the monthly figures or both.

Code	Description
B	Print both period and monthly on PAY74 and PAYW74.
M	Print monthly only on PAYM74.
P	Print pay period only on PAY74 PAYW74.

 

Print Flags are supplied with Preceda and cannot be changed, added or deleted.

Code	Description
0	The value is not included separately on the Payment Summary.
1	Include this Allowance/Deduction code on the Payment Summary. It is printed in the allowances box on the Payment Summary and not included in the gross figure.
2	LS A as a genuine redundancy, invalidity or app early retire scheme
3	Include this value in the total value for Lump Sum B printed on the Payment Summary.
4	Include this value in the ETP Payment Summary.
5	Include this value in the total value for Lump Sum D printed on the Payment Summary.
6	Include this value in the total value for Lump Sum E printed on the Payment Summary.
7	A Union/Professional Assoc fee value is included in the Deduction.
8	Include this value in the union Fees area of the Payment Summary.
9	Include this value in the total value for Community Development Employment Program CDEP Salary or Wages
A	Workplace Giving value included in Workplace Giving Total. The value is displayed as a separate amount below the Union Fees area of the Payment Summary.
B	LS A is NOT a genuine redundancy, invalidity or app early retire scheme.
C	Reportable Employer Superannuation Contributions
D	Exempt Foreign Employment Income
F	The value is included in total for Foreign Tax Paid
R	Non Taxable Vacation Leave Payout
S	Taxable Vacation Leave Payout
V	Taxable Other Leave Payout

 

You can check if the code is configured well by navigating to the Single Touch Payroll Health Check screen and refreshing the data.

This field is used to select the type for the Allowance or Deduction according to the Australian Taxation Office (ATO) schedules for A/Ds. This is used for grouping payments within STP reporting to the ATO.

This field is only editable for ATO Reportable Allowance and Deduction codes. When a valid combination of Classification and Year End Print Flag is selected, the drop-down list will display the valid options to select from. Some will automatically default and grey out where there is only one valid option (e.g. FEES and WORKPLACE GIVING). For all other codes, this field will be greyed out.

You can check that the code is configured well by navigating to the Single Touch Payroll Health Check screen and refreshing the data.

 

This displays the default rate that the Allowance is calculated.

• The default Allowance Rate is to be used only when the Standard Rate on the employee A/D record is 'zero' and the Standard Units is at least 'one'.
• To ensure that employees are paid with the correct rate, an Effective Date button is available in this field. When clicked, an Allowance Rates Drilldown window allows the user to enter the 'Effective Start date', 'Change Reason', and 'Allowance Rate' values.
• When a rate is changed in this field, a retrospective pay will be triggered under the following conditions:
  • The Effective From date is before the employee's Paid Up To date, and
  • The employee's Masterfile (PAYMAS and/or E010 file) rate is 'Blank'.

 

This field determines if the A/D code needs to prorate or not.

Code	Description
Y	Proration rules will be set at Program Control level.
N	No proration will be applied for the A/D code upon pay processing.

 

Proration will only be available for the following A/D Classifications:

Classification	Classification Description
1	Before Tax Earnings
2	Non-Taxable Earnings
3	Before Tax Deduction
4	After Tax Deduction
N	Non-Contributory $

 

Where an A/D Code is used as A/D by Worked Hours, the Prorate flag will be ignored, and the rate to be used is the applicable rate as of that date.

 

This field is only available if Classification O One Time Payment  is used.

• If the Allow/Deduct Code is for a Classification of O, the number of weeks over which the tax is to be spread can be entered.
• If a figure is entered into this field Preceda will use the ATO's option A method from the ATO NAT 7905 and NAT 10146 to calculate taxation.
• If left blank, or set to O zero Preceda will use the ATO's option B Progressive method from the ATO NAT 10146.
• If this field is left blank, or set to zero Preceda will issue a warning that option B will be used.
• Option B may be unreliable for taxation if the employee has changed tax codes or supplementary tax during the year.
• Option B should not be used for the first period of the financial year, or if the employee has no YTD earnings.
• This figure may be overridden during entry using the Tax Weeks Override field in the Overrides window.

 

Can this Deduction be partially deducted from the employee's salary to prevent their Net pay from falling below the Protected Net or zero?

 

Use the selected Rate Code instead of the Annual Super Gross value when calculating Superannuation.

• This field is only available for Allow/Deduct Codes with a classification of Q.

Example Base Hours = 38 The Allow//Deduct Code:- Use this Rate instead of ASG is set to Award Rate Employee Award Rate set to $13.50 Standard Allow/Deduct is set to 1 unit x 10 (%) 10% of Award Rate $13.50 = 1.35 x Base Hours of 38 = $51.30

 

The type of extra tax.

• This field is only accessible when the Classification is E Extra Tax.

Code	Description
E	Extra Tax
H	HELP - Higher Education Loan Programme
S	SFSS - Student Financial Supplement Scheme
P	Extra tax % of Linked Earnings or Gross

 

This field is activated when the Allow/Deduct Code Classification is 'C', allowing the value to be applied to the relevant ETP window after the relevant tax has been calculated.

Code	Description
DD	Death Benefit - Dependant (D)
DN	Death Benefit - Non Dependant (N)
DT	Death Benefit - Trustee (T)
LB	Life Benefit - Excluded (R)
LN	Life Benefit - Non Excluded (O)
TF	Tax Free

For the definition on age, tax percentage, and threshold of every ETP Code, see this ETP Tax Page.

 

NOTE: Tax Free ETPs, which can be identified by Allow/Deduct Code with Classification C and ETP Type of TF, do not automatically have the ETP Payment Code assigned to them. Users must choose the appropriate code from the list on the ETP window after the payment has been processed and appears on the ETP window.

Classification	Code	ETP Payment Code
C	DD	D
C	DN	N
C	DT	T
C	LB	R
C	LN	O
C	TF	blank

There are other ETP Payment Codes which are also not automatically mapped to an ETP Type. These are B, P and S.

• To achieve a B, process the ETP against the A/D Code where the ETP Type is DN. When it appears on the ETP window, you will need to manually update the Payment Code to B from the prompt list.
• To achieve a P, process the ETP against the A/D Code where the ETP Type is LN. When it appears on the ETP window, you will need to manually update the Payment Code to P from the prompt list.
• To achieve a S, process the ETP against the A/D Code where the ETP TYpe is LB. When it appears on the ETP window, you will need to manually update the Payment Code to S from the prompt list.

 

Indicate if the system is to test for a set minimum value or not.

Code	Description
Y	Test for Super Minimum value
N	Do not test for Super Minimum Value

 

Specify the set minimum value to test.

Specify if the system will test for a set maximum value or not.

Code	Description
Y	Test for Super Maximum value.
N	Do not test for Super Maximum Value.

 

Enter the set maximum value to test .

Specify the Pay Frequency that the test will apply to.

This field is only displayed if Preceda Variable *RETRO_PAY Position 1 = 'C'.

This flag determines how a retrospective payment is to be made as an allowance code.

Code	Description
Y	Retrospective pays will be calculated on this code.
N	Retrospective pays will not be calculated on this code.

When creating or cloning a code, this field will be set to 'Y' or 'N' based on the Classification. Any Classification included in the Retro Pay module is set to 'Y' by default.

The code is an A/D code with Classification 'O' to enable One Time Payment Tax Rules (at Marginal Rates).

If the Allow/Deduct Code does not have a Retro Pay Code attached (saved), retrospective calculations cannot be made against the original code.

Note: The display and processing of this field is determined by Preceda Variable *RETRO_PAY Position 1 is set to 'C', and all other Positions is Blank.

 

This field is only available when the Preceda Variable *RETRO_PAY Position 1 is left blank.

This field determines how a retrospective payment is to be made using the original A/D Code.

• Ticking this box means that retrospective pays will be calculated on the selected code. If the corresponding Allow/Deduct Code does not have a tick on this Retro Pay field, retrospective calculations will not be made on the original code. By default, this field is ticked.
• The OTP Weeks for Retro Tax field determines the number of weeks to apply (i.e. 52 weeks) on the calculation.

Note: This field is only available when the Preceda Variable *RETRO_PAY Position 1 is left blank. If Positions 2-3 are set to 'r_', retrospective payments will be made using the original code with a prefix 'r_' (e.g. QUARTERS will become r_QUARTERS). If this is left blank, no prefix will be added to the description of Allow/Deduct Code when displayed on the pay slip.

 

This field manages the tax calculations for imported or manually keyed retro transactions on Retro Entry via Single Screen.

This field is enabled when the Retro Pay field is ticked.

Option	Description
Ticked	Employee Pay Frequency will be referred to and the number of weeks corresponding to a pay period will be applied. The OTP Tax Weeks for Retro Tax will be disabled and not considered when performing tax calculations for the corresponding retro transactions.
Unticked (Default)	The OTP Tax Weeks for Retro Tax is enabled and referred to with a default Tax Weeks of '52', which you can modify.

 

When the Retro Pay is calculated (i.e. Retro Pay field is ticked), this displays the number of weeks to be used to calculate the One Time Payment Tax.

By default, this field displays a value of '52'.

This field is only used when the Retro Pay field is ticked and the Use Actual Tax Weeks field is left unticked.